Summary of the History of Graft and Corruption Laws in the Philippines

Pre War period 1900-1945

In the period leading up to world war two, the primary law on graft and corruption was The Revised
Penal Code. The RPC defined the punishable acts and the elements thereof under title seven, chapter
one, crimes committed by public officers.

Post War Period 1945-1970

The period after world war two would still see the RPC as the governing law on graft and corruption.
However, this period would see the introduction of one of the first special penal laws, Republic Act No.
1379 of 1955, the act provided for the forfeiture of property that was acquired unlawfully by public
officers or employees.

Subsequently, the Ant-Graft and Corrupt Practices Act of 1960 was passed, the law served to add to
the number of punishable acts already defined by the revised penal code namely:

“(a) Persuading, inducing or influencing another public officer to perform an act

constituting a violation of rules and regulations duly promulgated by competent
authority or an offense in connection with the official duties of the latter, or
allowing himself to be persuaded, induced, or influenced to commit such violation
or offense.

(b) Directly or indirectly requesting or receiving any gift, present, share,

percentage, or benefit, for himself or for any other person, in connection with any
contract or transaction between the Government and any other part, wherein the
public officer in his official capacity has to intervene under the law.

(c) Directly or indirectly requesting or receiving any gift, present or other

pecuniary or material benefit, for himself or for another, from any person for whom
the public officer, in any manner or capacity, has secured or obtained, or will secure
or obtain, any Government permit or license, in consideration for the help given or
to be given, without prejudice to Section thirteen of this Act.

(d) Accepting or having any member of his family accept employment in a private
enterprise which has pending official business with him during the pendency
thereof or within one year after its termination. chan robles virtual law library

(e) Causing any undue injury to any party, including the Government, or giving
any private party any unwarranted benefits, advantage or preference in the
discharge of his official administrative or judicial functions through manifest
 partiality, evident bad faith or gross inexcusable negligence. This provision shall
apply to officers and employees of offices or government corporations charged
with the grant of licenses or permits or other concessions.

(f) Neglecting or refusing, after due demand or request, without sufficient

justification, to act within a reasonable time on any matter pending before him for
the purpose of obtaining, directly or indirectly, from any person interested in the
matter some pecuniary or material benefit or advantage, or for the purpose of
favoring his own interest or giving undue advantage in favor of or discriminating
against any other interested party.

(g) Entering, on behalf of the Government, into any contract or transaction

manifestly and grossly disadvantageous to the same, whether or not the public
officer profited or will profit thereby.

(h) Directly or indirectly having a financial or pecuniary interest in any business,

contract or transaction in connection with which he intervenes or takes part in his
official capacity, or in which he is prohibited by the Constitution or by any law
from having any interest.
(i) Directly or indirectly becoming interested, for personal gain, or having a
material interest in any transaction or act requiring the approval of a board, panel or
group of which he is a member, and which exercises discretion in such approval,
even if he votes against the same or does not participate in the action of the board,
committee, panel or group. Interest for personal gain shall be presumed against
those public officers responsible for the approval of manifestly unlawful,
inequitable, or irregular transactions or acts by the board, panel or group to which
they belong. chan robles virtual law library

(j) Knowingly approving or granting any license, permit, privilege or benefit in

favor of any person not qualified for or not legally entitled to such license, permit,
privilege or advantage, or of a mere representative or dummy of one who is not so
qualified or entitled.

(k) Divulging valuable information of a confidential character, acquired by his

office or by him on account of his official position to unauthorized persons, or
releasing such information in advance of its authorized release date.”

Pre martial law 1970-1986

The pre-martial period would see the introduction of PD. 46 of 1972 that made it punishable for public
officials and employees to receive and for private persons to give, gifts on any occasion including
Christmas. This bridged the gap in the Anti-Graft and corrupt practices act of 1960 by indirectly
removing that qualification that the act of gift-giving be in consideration of an act. The act of gift-
giving itself is now punishable and has been broadened to also include the giver of the gift.

PD No.749 of 1975 would also be passed, providing for immunity from prosecution givers of bribes
and other gifts and to their accomplices in bribery and other graft cases against public officers. The law
would give immunity to the above individuals provided they served as informants, immunity would be
provided if the following requisites were met.

1. The information must refer to consummated violations of any of the

abovementioned provisions of law, rules, and regulations; 60

2. The information and testimony are necessary for the conviction of the accused
public officer;

3. Such information and testimony are not yet in the possession of the State;

4. Such information and testimony can be corroborated on its material points; and

5. The informant or witness has not been previously convicted of a crime

involving moral turpitude.

Post martial law 1986-Present

The post martial law period of 1986 would see provisions against graft and corruption reiterated and
further enshrined under Article XI Accountability of public officers and defines the mechanism by
which the President, Vice-President, Members of the Supreme Court, Constititonal Commissions and
the Ombudsman may be removed.

‘”SECTION 2. The President, the Vice-President, the Members of the Supreme

Court, the Members of the Constitutional Commissions, and the Ombudsman may
be removed from office, on impeachment for, and conviction of, culpable violation
of the Constitution, treason, bribery, graft and corruption, other high crimes, or
betrayal of public trust. All other public officers and employees may be removed
from office as provided by law, but not by impeachment.”
Republic Act No. 7080 of 1991 would then be passed, the law defines the punishable act of Plunder
and its elements as well as ill-gotten wealth.

d) “Ill-gotten wealth” means any asset, property, business enterprise or material

possession of any person within the purview of Section Two (2) hereof, acquired
by him directly or indirectly through dummies, nominees, agents, subordinates
and/or business associates by any combination or series of the following means or
similar schemes:

1) Through misappropriation, conversion, misuse, or malversation of public funds

or raids on the public treasury;

2) By receiving, directly or indirectly, any commission, gift, share, percentage,

kickbacks or any other form of pecuniary benefit from any person and/or entity in
connection with any government contract or project or because of the office or
position of the public officer concerned;

3) By the illegal or fraudulent conveyance or disposition of assets belonging to the

National Government or any of its subdivisions, agencies or instrumentalities or
government-owned or -controlled corporations and their subsidiaries;

4) By obtaining, receiving or accepting directly or indirectly any shares of stock,

equity or any other form of interest or participation including the promise of future
employment in any business enterprise or undertaking;

5) By establishing agricultural, industrial or commercial monopolies or other

combinations and/or implementation of decrees and orders intended to benefit
particular persons or special interests; or

6) By taking undue advantage of official position, authority, relationship,

connection or influence to unjustly enrich himself or themselves at the expense
and to the damage and prejudice of the Filipino people and the Republic of the
Philippines.